News from Thailand – December 19, 2012

News out Thailand – December 19, 2012

Is ruling party Pheu Thai a sister of the Dutch VVD? You would almost think so, because the cabinet decided on Tuesday to reduce income tax in the highest bracket (annual income above 4 million baht) from 37 to 35 percent.

Former deputy party leader Korbsak Sabhavasu (Democrats) writes on social media that this decision goes against the trend elsewhere in the world. "Many countries are trying to narrow the income gap between the rich and the poor by raising taxes on the rich."

The cabinet has also decided to add two tranches, which would result in a fairer distribution of the tax burden. Married couples can now file separate declarations. The changes cost the government 32 billion baht: 25 billion for the reduction of the highest rate and 7 billion for the separate returns.

The income gap between rich and poor has remained roughly the same over the past two decades of economic growth in Thailand. The richest 20 percent of the population earns 54 percent of the total income, the poorest 20 percent only 4,8 percent. Compared to other countries, Thailand occupies a middle position in terms of income distribution.

– The Ministry of Education will propose to all teachers in violence-ravaged areas of the South a bulletproof vest. Monday it was hit again: a songthaew truck came under fire in Tak Bai, killing two officials and injuring five other passengers, including a schoolteacher.

The National Security Council says it has bulletproof vests in stock, so they can be distributed immediately. Public transport on the route through Tak Bai district was suspended indefinitely yesterday.

Deputy Minister Sermsak Pongpanit (Education) says the three southernmost provinces have been given the authority to issue gun permits to teachers, allowing them to carry a gun in public.

The State Railway of Thailand (SRT) is moving ahead with the proposal to install bomb scanners at the entrances of the stations in Pattani, Yala and Narathiwat. Costs a nice penny: 100 million baht. The SRT has also begun to employ the widows of killed personnel.

– The hunt for former Prime Minister Abhisit and his then Deputy Prime Minister Suthep Thaugsuban is getting grim. Now the Department of Special Investigation (DSI) wants to prosecute both for 700 murder attempts and 800 cases of violence during the red shirt protests in April and May 2010. According to Abhisit, they are held liable as private individuals and not in their position at the time.

Last week, Abhisit and Suthep had to face the DSI, who accused them of murder. This accusation was based on a verdict of the court, which found that a taxi driver had been killed by army fire. The court has now also established this in two other cases. The DSI has brought 35 cases involving a fatality.

Suthep says he and Abhisit have been pressured to accept the government's planned amnesty bill [which would absolve former prime minister Thaksin from prosecution]. He points out that the orders they issued in 2010 were aimed at protecting the lives of officials and innocent civilians. The actions against the demonstrators started with soft measures and hardened because armed 'terrorists' were among the demonstrators.

The CRES, which at the time was responsible for maintaining the state of emergency and of which Suthep was the director, therefore gave the army permission to fire live ammunition. Before that order was issued, the Attorney General consulted the UN charter to see if the state was allowed to use weapons.

Suthep also pointed out that Tarit Pengdith, head of the DSI, has nothing on his mind, because he was a member of the CRES at the time. He has not made a murder pit of his heart in it. Suthep says he has noted everything Tarit brought up. However, the emergency ordinance that applied at the time exempts him from criminal, civil and disciplinary action.

– A spokesperson for the opposition party Democrats is in hospital with serious skull injuries. He was assaulted by two men in front of his flat in Bang Na (Bangkok) on Monday evening. One hit him on the head several times with a hard object and the other kicked him after he fell. Ramet Ratanachaweng is out of danger, but he still needs artificial respiration.

In addition to being spokesperson, Ramet is also the party's legal adviser. In that position, he petitioned the Ombudsman to inquire into the meeting of Kamronwit Thoopkrachang, head of the Bangkok Municipal Police, shortly after his appointment with Thaksin in Hong Kong. Ramet also asked the then chief of the national police to initiate a disciplinary investigation into Kamronwit for calling on his officers to demonstrate outside Democratic headquarters.

Party leader Abhisit said yesterday that the attack on Ramet was politically motivated. He called on the government and the chief of the national police to investigate the matter quickly. Abhisit said that Ramet had already told him that he was being followed. According to a board member of the Democratic party, this started after Ramet filed a petition for an investigation into certain senior officials.

– Governor Sukhumbhand Paribatra yesterday explained to his party board that he did not want to put pressure on the party when he launched his re-election campaign on Monday. The board had invited him to the meeting, not to scold him but to hear his explanation. Some Democrats nevertheless believe that Sukhumbhand did want to force the party to nominate him.

Sukhumbhand on Monday promised to cut fares on two BTS lines to encourage commuters to leave the car behind. 'I merely outlined the policy platform which is ready to be implemented if I am re-elected.' The governor believes that he has not bought any votes with this, because all residents of Bangkok can benefit from it. According to Sukhumbhand, a poll 2 months ago showed that he would win the elections with a 'land slide'. They are held in February.

Four other candidates are being considered for succession to Sukhumbhand. A selection committee will talk to them. One would have already withdrawn.

– Magsaysay Award winner Sombath Somphone from Laos has been missing for several days and NGOs in Thailand are concerned about this. They call on the government of Laos to take urgent action. Sombath (60) won the award in 2005. He is the founder of the Participatory Development Training Centre, which aims to promote social development.

– Adults with only a primary school education will still be given the opportunity to comply with their compulsory education. Thailand has compulsory education for 12 years, but many students drop out after 3 years of secondary school. On average, Thais go to school for 8,2 years, so when they are in Mathayom 2 (2nd grade secondary school). Eighteen million Thais, most of them over 40 years old, have less than 6 years of primary school.

The Ministry of Education is now coming up with a project to bring them up to speed. The further training consists of nine subjects, with an emphasis on knowledge that these adult students can apply in their daily lives. The government has allocated 450 million baht for the project. The participants have to cough up 1.500 baht themselves. Tomorrow the starting shot will be given in Nonthaburi by the Minister of Education.

– Bangkok has run out of ID cards. Those who have to renew their card will receive a temporary yellow card. According to the municipal secretary, it is all the supplier's fault.

– Twenty students were injured by the songthaew on their way to school in Mae Sot (Tak) overturned. Two students are in bad shape. The driver said he felt dizzy before he lost control of the wheel.

– The Ministry of Health is negotiating with drug manufacturers about reducing the price of 774 medicines. That would save the state 1,8 billion baht in savings. Glucosamine will be three times as cheap, so that adds up nicely.

– The Government House will have an infirmary. On Monday, the Minister of Tourism and Sports fainted. There was then nothing for it but to take him straight to a hospital.

– Fireworks displays in some places in the city and shows in entertainment venues are banned in Bangkok during the upcoming holidays. On January 1, 2009, 67 people died and 200 visitors were injured in the Santika pub in Ekamai (Bangkok). A pyrotechnic installation on stage was believed to be the cause of the deadly fire.

Political news

– Although the four coalition parties had already reached an agreement, the cabinet did not dare to take a decision on Tuesday whether a referendum should be held next year on amending the constitution. Once again, the cabinet has thrown in a committee to determine the 'framework' of the referendum.

A member of the quadripartite panel, which has dealt with the constitutional issue, says that the panel doubts whether it will succeed in mobilizing enough voters who would also have to say yes to the constitutional amendment.

At least half of Thais eligible to vote must vote for the referendum to be valid, and half of those must say yes. Although voters voted en masse for Pheu Thai last year, the question is whether they will support the Pheu Thai position in the referendum.

One of the articles in the 2007 constitution that Pheu Thai wants to delete is article 309. This legitimizes all decisions of the Assets Scrutiny Committee, a committee set up by the military at the time to investigate corruption under the Thaksin government. According to the panelist, amending the article does not mean that Thaksin would avoid prison or get back the confiscated 46,37 billion baht. [I think he is wrong, because in other posts I read that Thaksin will go free if this article expires.]

Economic news

– Myanmar wants to reduce the planned Dawei economic zone from 204,5 to 150 square kilometers. The neighboring country informed the Thai delegation led by Prime Minister Yingluck on Monday. The Thai group then took a look at the future industrial area, which will be developed by both countries. Thailand has not yet responded to Myanmar's suggestion.

– Cars and unprocessed and processed chickens will be the two top exports next year. The Department of Commerce expects growth rates of 15 and 12 percent respectively. Other products that will do well according to the crystal ball are electrical appliances, rubber products, building materials and canned seafood. All in all, this should result in export growth of 8 to 9 percent to US$250,41 billion.

Europe is still assessed as a risk factor, and the financial crisis is not expected to be resolved in the short term. Domestically, the increase in the minimum daily wage to 300 baht is an uncertain factor. The ministry is keeping a finger on the pulse and will come up with a new forecast in May. The International Trade Promotion Department has set up a center to closely monitor the global economy and evaluate the impact of developments on Thai exports.

– In the past, exporters who sold rice from other countries would have been dismissed as unpatriotic, but now that the government is buying rice from farmers at prices 40 percent above market prices, they have to. Some are even considering moving their hulling mill to a neighboring country. These sounds were heard at a seminar on Thai rice in the world market.

The STC Group, Thailand's largest rice exporter, is currently exploring investment opportunities in Cambodia and forming a joint venture with a Cambodian rice processing, logistics and export company. Cambodia wants to export 1 million tons of rice in the coming years.

– The new policy of the FED in the US to link interest rates to unemployment and the expected economic stimulus measures in Japan could lead to a greater inflow of foreign capital in Thailand, says Governor Prasarn Trairatvorkul of the Bank of Thailand. In combination with the credit growth of 15 percent and the stock market gain of 30 percent, this will lead to more losses for the central bank. After all, he has to buy dollars to keep the baht under control.

– The government's car plan is in the way of the housing plan. The sales of 'lower-end' town houses and detached houses in particular are affected by the car plan, whereby buyers of a first car receive a refund of the tax paid. Money to also buy a home is often lacking.

These are town houses that cost 1 to 2 million baht and detached houses of 2,5 million baht. They require a monthly payment that is about the same as buying a car. The Tararom Group expects it to take 3 to 5 years to restore the balance.

Participants who qualify for the program do not have to repay for 3 years, during which time they pay 3 percent less interest. [Or something like that because the messages in my news archive happily contradict each other. Let's stick to some advantage.]

– The Federation of Thai Industries (FTI) urges Prime Minister Yingluck to extend the verification process for foreign workers. Earlier, the FTI received no response from the Ministry of Employment. Friday was the last day for the migrants to register.

The FTI estimates that 400.000 migrants are illegal because they have not completed the NV procedure. They run the risk of being deported from the country. When this happens, the industry will be in deep trouble, as it is already facing labor shortages, the FTI says. “Companies need the workers and migrants need the jobs,” said the FTI president.

– The tenants of the Chalerm Larp Market in Pratunam (Bangkok) are given until mid-February by landlord Crown Property Bureau (CPB) to come up with a development plan for the heavily neglected market. Yesterday, on the last day they were allowed to stay on the market, tenants staged a rally in front of the CPB office on Nakhon Ratchasima Road.

The market has been in operation since 1977. Monthly rents range from 770 baht to 3.000 baht; the average is 1.500 baht. The CPB informed the 697 tenants about the plans to renovate the market eight months ago. They would be compensated, given priority in the allocation of new spaces and receive a coupon for the new lease.

When the market goes under the knife, the CPB provides temporary shelter on Indra Square and in shop premises on Soi Petchaburi 23, 25 and 27. They can stay there for free for 3 years.

[I don't understand some details in the message about a department store. The CPB would have asked it to make an offer. The message says that more than 1000 tenants would lose their land and source of income as a result. The tenants would also have set up their own company to redevelop the market.]

– Thai AirAisa, which has been flying to Hanoi since 2005 and to Ho Chi Minh City since 2007, will have a competitor next year. VietJet Air, the first private LCC (low cost carrier) in the socialist country, will start a daily flight between Bangkok and HCMC on February 10 and Hanoi in May. The airline caused a sensation earlier this year by holding a bikini show on board during the maiden flight. VietJet flies to nine destinations in Vietnam.

The Bangkok-HCMC route is attracting more and more passengers, which is why TAA has increased its frequency from two to three flights per day. TAA continues to fly once a day to Hanoi. TAA head Tassapon Bijleveld welcomes the arrival of VietJet. 'Competition is quite normal in a free market. That's nothing new to us.'

www.dickvanderlugt.nl – Source: Bangkok Post